In Arizona, a 'subject-to' purchase in real estate means:
Why The buyer takes title subject to (assumes the payments on but not personal liability for) an existing mortgage Is Correct
Answer B: The buyer takes title subject to (assumes the payments on but not personal liability for) an existing mortgage
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Arizona Questions
- Arizona is classified as a 'lien theory' state. This means that when a borrower takes out a mortgage:Finance
- An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:Finance
- In Arizona, the process by which a lender takes ownership of a property after the borrower defaults under a Deed of Trust is called:Finance
- A buyer in Arizona takes title 'subject to' an existing mortgage. This means:Escrow & Title
- A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?Finance
- An Arizona 'assumption fee' charged by a lender when a buyer assumes an existing mortgage is:Escrow & Title
- A lender requires a maximum 43% debt-to-income (DTI) ratio. A borrower has monthly debt payments of $750 and gross monthly income of $5,800. Can they add a mortgage payment of $1,200?Real Estate Math
- An Arizona buyer takes out a $350,000 mortgage at 6.75% for 30 years. The monthly payment factor is $6.49 per $1,000. What is the total interest paid over the life of the loan?Real Estate Math
Key Terms to Know
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →